Roughly every quarter, frugal travelers who are members of their favorite frequent flyer programs receive some form of promotion to encourage the purchase of miles. From mileage promotions, to bonus categories through mileage malls, airlines would like to do nothing more but to sell travelers miles with the promise of redeeming them towards future travel. Even the Gold Delta SkyMiles Credit Card from American Express now allows travelers to “borrow” points at a premium and earn them back over time.
When it comes time to plan low-cost travels, does it make sense to purchase or borrow towards the next dream trip? In some situations, it could make sense to buy miles towards that next flight.
The Argument for Purchasing Miles
In a very narrow set of situations, travelers who have been collecting miles using their favorite credit cards, or can transfer flexible points to their favorite program, may be able to gain value from purchasing miles. It all depends on how the circumstances align.
When promotions offer bonus categories for purchasing more miles, travelers may be able to turn those miles into a flexible airline ticket on their favorite airlines. Through multipliers and awards, their newfound mileage can equate to the same price of an international trip – effectively holding a ticket in a premium cabin at an economy price.
In the case of the Gold Delta SkyMiles Credit Card, even buying miles through “borrowing” can come at a discount. Travelers who do not earn the miles to cover their borrowed amount are charged 2.5 cents per mile – a discount of one cent per mile compared to the retail price of these points!
The Argument Against Purchasing Miles
Of course, with every good idea comes the limits that bring frugal travelers back down to reality. The biggest threat travelers face is devaluation – which can limit the actual value of those points without any warning.
Over the last three years, all three major legacy carriers have announced devaluations of their points and miles. As a result, travelers have to spend more miles to get to their dream destinations. For those who purchased miles and did not use them quickly, travelers may find themselves losing money through purchasing miles.
Additionally, dynamic award charts can also harm travelers over time. Those who are regular Delta or Southwest Airlines flyers know the price of an award flight can change quickly and without warning. When purchasing miles, the goal posts can change quickly – leaving flyers with a handful of miles and nowhere to go for their purchase. In these situations, transferring points from Membership Rewards (to Delta) or Ultimate Rewards (to Southwest) may be a better overall option.
When Should I Purchase Miles?
For those who have an ideal promotion to purchase miles and want to move forward, there are two questions they should ask prior to purchase:
- Can I use these miles to book a trip imminently (before devaluations)?
- Does this purchase represent a true value?
In a recent experience, I was tasked with purchasing two tickets to San Francisco to attend a concert. My options were either booking one with miles and the other with cash on American Airlines, or purchasing AAdvantage miles to put both on the same itinerary. In this case, I purchased the miles because I would use them immediately and the price of the miles was slightly less than a single round-trip ticket – thus satisfying both of my requirements!
While purchasing miles can come at a value, they also come with risks as well. For those travelers who approach promotions with a plan and can justify the value, purchasing miles can represent a value – but only in certain circumstances.
When do you make the leap to purchase miles? Let me know your thoughts in the comments below!
Written by Frugal Travel Guy @ http://www.frugaltravelguy.com
Written by Frugal Travel Guy @ http://www.frugaltravelguy.com